Treasury Wine Estates Ltd (TWE) has announced that the company is transitioning AUD$1.4 billion of financial loans into Sustainability Linked Loans.
TWE Chief Sustainability and External Affairs Officer Kirsten Gray said the premium winemaker was following through on its commitment to a lower carbon future.
“We’ve set ambitious targets to be powered by 100% renewable electricity by 2024 and reach net zero emissions (scope 1 and 2) by 2030. Transferring a substantial proportion of our existing loans to Sustainability Linked Loans provides even further incentive for our teams to progress towards our sustainability goals and cultivate a brighter future for all,” Ms Gray said.
As part of the Sustainability Linked Loans, TWE will receive financial incentives as it progresses and delivers towards a number of its sustainability targets including:
- 100% renewable electricity by 2024;
- Reduced greenhouse gas emissions;
- Undertaking a comprehensive review of water usage and footprint at a catchment level in F22; and
- 50% women in senior leadership and 42% female representation overall, by 2025.
“Setting sustainability targets is important but to truly make a difference we need to embed sustainability across the entire business. Integrating sustainability within our financial framework is a key step to keeping us accountable and building a resilient business for the long-term.
“We know the global wine industry has a carbon neutral future in its sights and we hope that TWE can demonstrate one way that winemakers can build sustainability into their business plans,” Ms Gray said.
The announcement forms part of TWE’s commitment to sustainability which focuses on building a resilient business, fostering healthy and inclusive communities, and producing sustainable wine. Recent initiatives including launching a global domestic and family violence policy, becoming a founder member of the Sustainable Wine Roundtable, and joining the RE100 global renewable power initiative.